The Swift Rise of Sports Gambling: Danger to Society or Economic Enhancer?

Abstract

Over the past few years, the American community has experienced the emergence of a sports gambling conglomerate and its increasing popularity. Advertisements for sportsbooks have plagued the internet, social media, and television. When you turn on the television to watch a live sporting event, more often than not, much of the coverage is dedicated to the betting aspect of the sport. For example, it seems that every pre-game show for a sporting event is centered around which wagers the anchors believe to be sure wins. After the United States Supreme Court repealed PASPA in 2018, every state had the freedom to make its own decision on the legalization of sports wagering. As of now, twenty-five states and the District of Columbia have legalized the sports gambling industry. More than ever before in our country’s history, sports gambling is currently becoming a popular entertainment outlet for many Americans. With technological advancements and rapid legalization of the industry, Americans are able to submit sports wagers from the comfort of their own homes. They simply just click on the smartphone application for the sportsbook, and bet on the sporting events they are planning on watching. This phenomenon is both beneficial and detrimental for our nation. On one hand, the sports wagering industry is bolstering the economies of states that have legalized it. This study demonstrates that the full legislation of sports betting has proven to be extremely profitable for states. Through employment opportunities, tax revenue, massive handles and sportsbook revenues, the economic standing of these states has vastly improved since 2018. Yet, on the other hand, with the rapid legislation of sports betting there has been an equally substantial increment in the problem gambling population of these states. Through a detailed study of the stories of two sports gambling addicts, as well as other relevant sources, the true severity of compulsive gambling disorders is established. Due to the complex nature of the sports wagering industry - and its many benefits and consequences - states that have not yet legalized the action, but are contemplating it, need to implement many restrictions on the industry first before they proceed to make sports gambling a responsible phenomenon. Through a thorough examination of how the legalized sports gambling industry has played out in New Jersey and New Mexico, we will see how a more restricted sports betting industry is actually healthier overall for states. Furthermore, by taking into account the recommendations made by the National Council on Problem Gambling and the American Gambling Association, this study makes policy propositions that aim to make the sports gambling industry a profitable addition to states’ economies, but not at the expense of their citizens’ health. If this industry is shaped and regulated correctly, it will be a lucrative addition to our nation’s economy that will no longer negatively affect our society.